After affirming a district court judgement against Enplas Display Device Corp., the US Court of Appeals for the Federal Circuit on November 19, 2018, vacated the $4 million patent infringement damages award that Seoul Semiconductor Co. Ltd. had won. Enplas Display Device Corp. v. Seoul Semiconductor Co., Fed. Cir., 2016-2599, 11/19/18.

While the Court upheld findings that Enplas infringed a pair of valid patents on plastic lenses used for backlighting displays in flat-screen televisions, it voted 2-1 that the multimillion-dollar damages award on one patent was excessive and “not supported by substantial evidence” as the award included lost royalty calculations. “A reasonable royalty cannot include activities that do not constitute patent infringement, as patent damages are limited to those ‘adequate to compensate for the infringement,’” the Federal Circuit said. Judge Pauline Newman dissented on the reversal of the damages verdict.